ITAT directs AO to Exclude Cox & Kings from the list of comparables while Determining the ALP for International Transactions [Read Order]

The Income Tax Appellate Tribunal (ITAT) Bangalore, has held that Cox & Kings cannot be held to be a good comparable for determination of the Arm’s Length Price (ALP) for international transactions. The Appellant, M/s...

Arm’s Length Price can’t be determined using only two Comparables: ITAT [Read Order]

In Motorola Solutions India Pvt. Ltd vs Deputy Commissioner of Income Tax, the Delhi Bench of Income Tax Appellate Tribunal (ITAT) confirming the decision of Commissioner of Income Tax (Appeals) (CIT(A)) held that a set...

If there are Similar Transactions of Services with both Related and Unrelated Parties and Price is Comparable, It is taken to be at Arm’s Length Price: ITAT [Read Order]

The Delhi bench of ITAT in the case of Axis Risk Consulting Services Private Limited v. DCIT, held that if there are similar transactions of services with related parties as well as unrelated parties and...

No Penalty If determination of Arm’s Length Price has not lead to any Transfer Pricing Adjustment, with no effect on income of the assessee: ITAT [Read Order]

Delhi bench of Income Tax Appellate Tribunal (ITAT) recently held that if determination of arm’s length price has not lead to any transfer pricing adjustment and with no effect on income of the assessee, no...

ITAT Invalidates Addition made by way of Adjustment to ALP in respect of Transaction of Providing Guarantee to AE [Read Order]

The Income Tax Appellate Tribunal, Kolkata bench in its recent order ruled that Transaction of providing guarantee by the Assessee in respect of a loan taken by its AE constitute ‘International Transaction’ for the purpose...

Purchase of Shares of AE can’t be regarded as International Transaction and Investigation u/s 92 cannot Applicable: ITAT [Read Order]

The Income Tax Appellate Tribunal, Kolkata bench recently ruled that transaction of purchase of shares of AE cannot be regarded as international transaction and cannot be subject matter of investigation under Section 92 of the...

Brand Promotion Expenses incurred by BMW India constitute ‘International Transaction’: ITAT [Read Order]

Advertising, marketing and promotional expenses incurred by BMW India for the brand promotion of BMW Gropu would constitute ‘international transaction’ within the meaning of section 92 of the Income Tax Act, the Delhi bench of...

Delhi HC Upholds Clubbing of Two distinct Revenue Streams for ALP purpose: Grants Relief to ESPN [Read Order]

While granting relief to ESPN Software India Ltd, a division bench of the Delhi High Court upheld the ITAT ruling wherein two distinct revenue streams i.e. sale of air time with distribution business, advertisements, sale...

No Penalty If ALP was determined as per section 92C in Good Faith and with Due Diligence: ITAT Delhi [Read Order]

A division bench of the Delhi ITAT, last week held that penalty under section 271(1)(c ) of the Income Tax Act, 1961 cannot be levied if the Arm’s Length Price (ALP) was determined as per...

CBDT notifies Transfer Pricing Tolerance Limit for AYs 2017-18 and 2018-19 [Read Notification]

The Central Board of Direct Taxes (CBDT) recently notified the transfer pricing tolerance limit for computation of Arm’s Length Price (ALP) applicable to assessment years 2017-18 and 2018-19. As per the current Notification, “where the...

Royalty & Technical Assistance Fee are two separate Transactions for the purpose of computing ALP: Delhi HC [Read Judgment]

While upholding the order of ITAT, the division bench of the Delhi High Court held that royalty and technical assistance fee did not form part of a composite transaction and have to be treated as...

Transaction of extending Credit Period to AEs can be regarded as ‘International Transaction’ for the purpose of determining ALP: ITAT Bangalore [Read Order]

The Bangalore bench of Income Tax Appellate Tribunal recently ruled that transaction of extending credit period to Associate Enterprises can be regarded as “international transaction” for the purpose of determination of Arm’s Length Price. While...